Are you a buyer preparing to close on a house? Now is a good time to refresh
yourself on the most common closing costs.
There are more expenses to buying a house than just the monthly mortgage
payment. More than likely you'll need to come up with some cold, hard cash
in order to finalize the deal.
Here's some common closing costs to consider:
Down Payment: Due to today's economic climate most buyers will need to
put down at least 20 percent. This makes good financial sense. If you can't
afford to put 20 percent down then you probably can't afford to buy this
Loan Origination: This is what the lender charges you to underwrite the
loan, meaning what they charge for their time and all the paperwork they
need to do.
Points: You'll often see that different lenders have different "rates"
and different "points" they charge. Buy paying points you can receive a
lower interest rate, but this means more cash at closing.
Credit Score: You can access your credit report for free at
annualcreditreport.com, however, in order to see your credit "score" -- the
magic number that lenders use to determine your interest rate -- you'll need
to pay a small fee.
Home Inspection: You want to be sure, no matter if the house is new or
old, that you get a home inspection by a qualified inspector. You may love
the house and the price, but if you find out that a big ticket item needs
replaced you will be able to renegotiate the price or decide to change your
tune on buying the home. A typical inspection will run you from around $300
Private Mortgage Insurance (PMI): This is what a lender charges if you
are putting less than 20 percent down on the cost of the home. It usually
runs about .5 to 1 percent of the total cost of the loan and is simply a
safeguard to protect the lender should you default.
Other Small Fees: Insurance escrow, property tax escrow, notary feeds,
land surveys, deed recording, etc. Be sure to ask your real estate agent
which will apply to your contract and what the expected costs will be.
Congratulations on the decision to buy. Owning a home can be a
wonderfully fulfilling experience. Just be sure you're ready for the closing
costs coming your way!
Cross Roads $150-250K
Cross Roads $250-500K
Cross Roads $500K+
Highland Park $250-500K
Highland Park $500K-$1000K
Highland Park $1000K+
Lakewood Village $150-250K
Lakewood Village $250-500K
Lakewood Village $500K+
Little Elm $150-250K
Little Elm $250-500K
Little Elm $500K+
Oak Point $150-250K
Oak Point $250-500K
Oak Point $500K+
Providence Village $150K+
Royse City $150-250K
Royse City $250K+
University Park $250-500K
University Park $500K-$1000K
University Park $1000K+
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Richardson Garland Wylie Sachse Rowlett Lavon Royse City Rockwall Fate Plano Murphy Allen Lucas Lovejoy Parker Fairview McKinney Princeton Melissa Anna Prosper Celina Frisco Little Elm Aubrey Crossroads Providence Village Savannah Carrollton Dallas Highland Park University Park Cul De Sac North ISD School Middle High Elementary Golf Lot Sale Zero Down First Time Buyer VA FHA USDA Foreclosure Distress REO Short Sale Relo Collin County Rockwall County Dallas County Denton County